Probate Catch-22 Situation?

[Jazz1966]

Hi,

Please can someone advise on the following?
My understanding is that an executor (who is not a beneficiary) cannot sell assets until after the grant of probate has been obtained.
But what happens if the estate needs to pay IHT?
Again, my understanding is that the grant of probate will not be given if IHT tax has not been paid, but you need probate to sell assets to pay IHT?
How is this normally resolved if there is not enough cash in the estate to fully pay the IHT before probate?

 

[kulture]

Your understanding is incorrect. I would suggest that you talk to a solicitor who can best advise what you can easily sell and what is more legally tricky. Also to advise you on how you prove that you get best value.

Failing that then I bet that there are banks that will loan money in a type of bridging loan.

 

[WaveJumper]

Well strangely enough had been looking at this subject last week whilst signing various documents on another matter, just one of the links I saved on the subject as @kulture suggested a trip to the solicitors is advised and look out for the six month limit:

What Happens If You Can't Afford Inheritance Tax (IHT)?

What are your options for paying Inheritance Tax (IHT)? Our expert Private Client solicitors tell you everything you need to know.

www.girlings.com

 

[NeilHarries]

Are there bank accounts with cash in them? Often the bank will release funds to pay the IHT prior to probate, also there are other funding options. Have you enagaged a pobate practitioner or are you doing it yourself?

 

[Michael Loveridge]

If there's cash in the deceased's bank / building society / National Savings you can complete this form and send it to the bank etc, who will then pay the IHT direct to HMRC - https://www.gov.uk/government/publi...cheme-bank-or-building-society-account-iht423

Also bear in mind that if the IHT is due on real property (land / buildings) you can choose to pay by instalments over 10 years, so you only need to pay 10% of the total due to get probate.